SBA Guaranteed Loans
Loan Guarantee Programs
SBA Guaranteed Loans
Eligible projects are business real estate, inventory purchases, machinery and equipment, leasehold improvements, working capital, and, in some circumstances, debt consolidation.
SBA loans are a special form of financing backed by the United States Government to help small businesses obtain the funding they need for permanent or seasonal working capital, accounts payable, inventory, leasehold improvements, machinery, equipment, the purchase of real estate, building renovation, construction, and more. SBA funds can also be used to start up a new business or to acquire or expand an existing business. Because SBA loans must be written to government standards, businesses must qualify to receive financing under their programs. SBA borrowers must be for-profit and meet the established size standards, and there are some types of businesses that will not qualify for SBA financing. If you have a new company, or you’re expanding an existing one, if you don’t have sufficient collateral to get your business in shape, or you can’t meet traditional lending criteria for some other reason, your bank can work with you to explore your options for SBA financing.
SBA 7(a) Term Loans: This loan program can help companies that are just beginning operations, that are expanding their existing operations, or that don’t meet traditional lending criteria for other reasons. Loan amounts can be as high as $2 million, with terms as long as 25 years, if the loan is for real estate.
SBAExpress Loans: These programs, technically part of the SBA 7(a) program, offer a streamlined application and closing process and are approved by bank loan officers without having to go through the extra step of an SBA review. In addition, the SBA allows for unsecured loans under these programs, with dollar limitations that vary by program. Three types of loans are included in this program, each with different loan limits:
- SBAExpress is designed to reduce the cost for smaller, less complex loans. It has a maximum loan amount of $350,000.
- Community Express was developed for business owners operating in low-to-moderate income areas, rural areas (which includes all of Southeast Alaska), and minority- and women-owned businesses. This program has a maximum loan amount of $250,000, and the business owner is required to get Technical Assistance Training from the Alaska Small Business Development Center. This program is unique in that it is based on strong credit history but may not require collateral.
- Patriot Express is designed for the military community and has a maximum loan amount of $500,000. At least 51% of the business must be owned by a veteran (honorably discharged), active duty military personnel eligible for the military’s TAP, a Reservist, a member of the National Guard, or a spouse/widow/widower of one of these types of military personnel.
SBA 504 Term Loans: This is a long-term loan to help businesses obtain funds for land, buildings, machinery, and equipment with a minimum useful life of 10 years. In general, the bank funds 50% of a project, the SBA, through a Certified Development Company, funds an additional 40%, and the borrower provides a 10% equity contribution (this requirement can be higher with special-purpose properties or start-up companies). The SBA offers variable- or fixed-rate options and a maximum 20-year term.
U.S. Small Business Administration
510 L St., Suite 310
Anchorage, AK 99501-1952
Phone: (800) 755-7034
Fax: (907) 271-4545
For more info:
Inventory/Seasonal Working Capital
Equipment or Vehicle
Other Long Term Financing
Farming or Aquaculture Operation
Energy Efficiency Improvements